ISLAMABAD, June 19 (Xinhua) -- Pakistan has raised 1.227 trillion Pakistani rupees (approximately 4.4 billion U.S. dollars) through a domestic bond auction, including the country's first-ever 15-year zero coupon bond, the Ministry of Finance said on Wednesday.
The 15-year bond, which offers a lump-sum return at maturity with no periodic interest payments, raised 47.92 billion rupees (about 172 million dollars) at a yield of 12.70 percent.
Officials said the instrument would help reduce short-term repayment pressure and support long-term fiscal planning.
"This is a major step forward in making Pakistan's financial system stronger and more resilient," Finance Minister Muhammad Aurangzeb said in a statement. "We are introducing smarter borrowing options that reduce risk and broaden investor participation."
The ministry said the auction reflected growing investor confidence, as yields on long-term Pakistan Investment Bonds declined -- down 44 basis points for the 5-year and 9 basis points for the 10-year bond -- indicating expectations of monetary easing.
The average time for domestic debt maturity has extended to 3.75 years from 2.7 years a year earlier, indicating the improvement of the debt profile.
The investor base is also expanding, with increased participation from pension funds and insurance companies, contributing to financial stability and deeper capital markets. ■
